Binance To Open An Exchange In South Korea

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According to local news reports in Korea, a virtual asset trading platform is being developed in South Korea by the honorary chairman of the Kolon company. According to specific accounts, Lee Woong-yeol is receiving assistance from local blockchain-based organizations while he develops the cryptocurrency trading platform.

The Binance cooperation was announced on February 28. The honorary chairman’s spokeswoman stated that the company is prepared to cooperate with financial regulators. Kolon, a conglomerate with approximately 40 companies and 28 overseas subsidiaries, was created in 1954. The group of businesses oversees operations in a number of sectors, including banking, chemicals, and fashion.

Kolon has been interested in cryptocurrencies since 2020 and has invested in Dunamu and other South Korean exchanges.

When he departed the leadership post in Kolon in 2018, honorary chairman Lee is said to have met with local and international digital currency officials on a number of occasions. As he announced his resignation, Lee explained that his “untutored” position on blockchain technology influenced his decision to depart.

The planned cryptocurrency exchange from Kolon and Binance may compete with Upbit, the leading South Korean exchange in terms of market share. According to reports, Upbit controls more than 80% of the nation’s crypto investing sector.

Before joining the Kolon Group, on February 3, Binance bought most of the ailing South Korean cryptocurrency exchange Gopax. After leaving the South Korean market around two years ago, Binance is poised to re-enter the industry with its Gopax purchase.

Genesis, a troubled and bankrupt cryptocurrency lender, suspended its DeFi service withdrawals in November 2022 due to Gopax’s connections to the latter. Binance wants to assist Gopax in getting back on track and restoring business as usual.

Yet, the Gopax transaction is being looked at by South Korean financial watchdogs. The government has voiced concerns regarding Binance’s re-entry into South Korea. The largest cryptocurrency exchange by market capitalization, in their opinion, would lead to a rise in financial crimes in the nation, according to the local news outlet Chosun Ilbo.

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